Sustainability of Dependent Capitalism

Some Lessons from Canada P Mohanan Pillai The ongoing recession and the crisis dimensions that the Canadian economy has reached do not seem to constitute a transitory phase. The present crisis would appear to be the outcome of the cumulative impact of a gamut of structural maladies the economy has inherited on account of the particular development strategy it followed A vicious circle of dependence has developed overtime which seems to be gathering pace among trade and investment dependence, the weak balance of payments, slow growth rate and declining manufacturing productivity in the Canadian economy, this paper is an attempt to understand the nature and significance of the structural features and factors that have contributed to the ongoing crisis in Canada IN the literature on foreign investment Canada once used to be considered a 'miracle' country that prospered by the free flow of foreign capital and foreign technology. However, today the county is referred to with a sense of despair; the image of Canada today is that of an economy pauperised by the same forces which once generated the so-called miracle of prosperity.